Technical Analysis (Review of Cryptocurrency on Image)
1. Chart Review:
• The price broke above the long-term falling trend line and made a significant breakout.
• This breakout is a strong trend reversal signal and reveals bullish potential.
2. Target and Prices:
• Target 1: 1.00 USDT - First major resistance area.
• Target 2: 1.50 - 1.80 USDT - It appears as a long-term target after the breakout.
• These regions can be considered as important levels to be followed in case the rise continues.
3. Support and Resistance Levels:
• Support Levels:
• 0.70 USDT: Broken trend line and horizontal support level.
• 0.50 USDT: A strong support zone, as long as the price stays above this level the uptrend may remain active.
• Resistance Levels:
• 0.85 USDT: First resistance level, a strong rise can be expected above this area.
• 1.00 USDT: Psychological resistance point.
4. Indicators:
• Volume: An increase in volume is observed during the breakout, which shows that the movement is based on a solid foundation.
• RSI (Relative Strength Index): If it is approaching the overbought region, short-term corrections should be noted.
• MACD: Remaining in the positive zone supports the rise.
5. Formations and Formation Reversals:
• Falling Wedge Formation: The breakout occurred upwards and the movement may continue in line with the upward target.
• Trend Reversal: Signals for a transition from a downtrend to an uptrend have been received.
6. Trend Direction:
• Short Term Trend: Upward.
• Medium and Long Term Trend: The upward movement is expected to continue.
7. Strategy and Recommendations:
• Buying Strategy: If the price pulls back to 0.70 USDT levels, buying opportunities can be evaluated.
• Stop-Loss: If a close occurs below the 0.50 USDT level, a stop loss order can be used.
• Profit Taking Strategy: Gradual profit taking can be done at levels of 0.85 - 1.00 USDT.
• Risk Management: Even if the upward trend is strong, risk management should be done by taking into account possible corrections.
Conclusion
The chart shows a strong upward breakout. If the price maintains its momentum after the breakout, it is likely to continue to rise towards the set targets. However, it is always important to manage risk and set stop-loss orders.